The Actual Law

The Actual Law

Click here to view the entire document for House Enrolled Act 1454. Excerpts that apply directly to Merrillville are listed below.

IC 6-9-54.5-4 Taxable transactions; exemption

Sec. 4. (a) Except as provided in subsection (c), a tax imposed under section 3 of this chapter applies to a transaction in which food or beverage is furnished, prepared, or served:

(1) for consumption at a location or on equipment provided by a retail merchant;

(2) in the town; and

(3) by a retail merchant for consideration.

     (b) Transactions described in subsection (a)(1) include transactions in which food or beverage is:

(1) served by a retail merchant off the merchant’s premises;

(2) sold in a heated state or heated by a retail merchant;

(3) made of two (2) or more food ingredients, mixed or combined by a retail merchant for sale as a single item (other than food that is only cut, repackaged, or pasteurized by the seller, and eggs, fish, meat, poultry, and foods containing these raw animal foods requiring cooking by the consumer as recommended by the federal Food and Drug Administration in chapter 3, subpart 3-401.11 of its Food Code so as to prevent foodborne illnesses); or

(4) sold with eating utensils provided by a retail merchant, including plates, knives, forks, spoons, glasses, cups, napkins, or straws (for purposes of this subdivision, a plate does not include a container or package used to transport food).

     (c) The town food and beverage tax does not apply to the furnishing, preparing, or serving of a food or beverage in a transaction that is exempt, or to the extent the transaction is exempt, from the state gross retail tax imposed by IC 6-2.5.

As added by P.L.236-2023, SEC.119.

IC 6-9-54.5-5 Rate

Sec. 5. The town food and beverage tax rate:

(1) must be imposed in an increment of twenty-five hundredths percent (0.25%); and

(2) may not exceed one percent (1%);

of the gross retail income received by the merchant from the food or beverage transaction described in section 4 of this chapter. For purposes of this chapter, the gross retail income received by the retail merchant from a transaction does not include the amount of tax imposed on the transaction under IC 6-2.5.

As added by P.L.236-2023, SEC.119.

IC 6-9-54.5-6 Applicability of state gross retail tax provisions

Sec. 6. A tax imposed under this chapter is imposed, paid, and collected in the same manner that the state gross retail tax is imposed, paid, and collected under IC 6-2.5. However, the return to be filed with the payment of the tax imposed under this chapter may be made on a separate return or may be combined with the return filed for the payment of the state gross retail tax, as prescribed by the Department of State Revenue.

As added by P.L.236-2023, SEC.119.

IC 6-9-54.5-7 Distribution

Sec. 7. The amounts received from the tax imposed under this chapter shall be paid monthly by the treasurer of state to the town fiscal officer upon warrants issued by the auditor of state.

As added by P.L.236-2023, SEC.119.

IC 6-9-54.5-8 Food and beverage tax receipts fund

Sec. 8. (a) If a tax is imposed under section 3 of this chapter by the town, the town fiscal officer shall establish a food and beverage tax receipts fund.

     (b) The town fiscal officer shall deposit in the fund all amounts received under this chapter.

     (c) Money earned from the investment of money in the fund becomes a part of the fund.

As added by P.L.236-2023, SEC.119.

IC 6-9-54.5-9 Uses of revenue

Sec. 9. Money in the food and beverage tax receipts fund must be used by the town only for the following purposes:

(1) Park and recreation purposes, including the purchase of land for park and recreation purposes.

(2) Tourism-related purposes or facilities, including the purchase of land for tourism-related purposes.

(3) The pledge of money under IC 5-1-14-4 for bonds, leases, or other obligations incurred for a purpose described in subdivisions (1) and (2).

Revenue derived from the imposition of a tax under this chapter may be treated by the town as additional revenue for the purpose of fixing its budget for the budget year during which the revenues are to be distributed to the town.

As added by P.L.236-2023, SEC.119.

IC 6-9-54.5-10 Covenant

Sec. 10. With respect to obligations for which a pledge has been made under section 9 of this chapter, the general assembly covenants with the holders of the obligations that this chapter will not be repealed or amended in a manner that will adversely affect the imposition or collection of the tax imposed under this chapter if the payment of any of the obligations is outstanding.

As added by P.L.236-2023, SEC.119.

IC 6-9-54.5-11 Expiration

Sec. 11. (a) If the town imposes the tax authorized by this chapter, the tax terminates on July 1, 2045.

     (b) This chapter expires July 1, 2045.

End of new law verbiage